TNAG-1248-FCO40-1562-Press-reports-on-the-future-of-Hong-Kong-1983 — Page 94

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Private Segretary

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2 1 JUL 1983

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FUTURE OF HONG KONG: PRESS COVERAGE

1.

144

From K C Walker, HKD

July 1983

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PS/PUS

Mr Donald

News Department Mr Clift, HKD

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Peking TELNO 71 to Hong Kong reports a statement by Qi Huaiyuan, Director of the Chinese Foreign Ministry's Information Department, on 12 July denying a Hong Kong press report that China would amend its Constitution to permit Hong Kong to retain a capitalist system. Qi said that China would act in accordance with the statement in Premier Zhao Ziyang's Report to the National People's Congress, i.e. that China "would recover sovereignty over Hong Kong at an opportune time and take appropriate measures to maintain its prosperity".

2.

Articles in The Times and Guardian today suggest that Qi's statement indicates a reversal of China's position on permitting the continuation of a capitalist system in Hong Kong. We do not agree with this interpretation. The Chinese have continued to emphasize their intention that Hong Kong should retain its "existing systems' including a capitalist economy. We believe that Qi merely intended to deny the suggestion in the Hong Kong report that China had decided

further change in its Constitution for this purpose. wording of Article 31 of the/Constitution adopted in 1982 is already sufficient to accommodate such an agreement. FED concur.

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13 July 1983

Kalalken

K C Walker HKD WH305

(233 3722)

CONFIDENTIAL